FanDuel Is Outpacing DraftKings In Fantasy Sports Revenue, At Least In Pennsylvania

The revenue numbers are in from the first month of Pennsylvania daily fantasy sports contests, and the winner is FanDuel.

Yes, FanDuel topped DraftKings in May in Pennsylvania. It’s a narrow but notable victory for the second-largest DFS operator in the nation, in terms of users, entry fees and revenue.

In total, eight DFS companies reported revenue for the initial month, according to numbers from the PA Gaming Control Board, from FanDuel’s total of more than $673,000 to FastPick’s $319. Pennsylvania will collect nearly $200,000 in tax revenue from the DFS operators from last month’s activity.

Full Time Fantasy Sports and Fantasy Football Players Championship: No revenue

Total: $1,331,706.34 revenue, $199,755.94 tax

A big month for FanDuel

The DFS win in Pennsylvania comes on the heels of FanDuel’s acquisition by Paddy Power Betfair in late May. The Dublin-based gaming company snapped up FanDuel in a deal expected to close sometime in the third quarter of 2018.

PPB will get not only an entry path into DFS, but access to FanDuel’s user database with an eye toward US legal sports betting. The company made as much clear in the press release announcing its purchase:

The transaction strengthens the Group’s opportunity to target the prospective US sports betting market through the addition of a strong brand, large existing customer base and talented team. The scale of the combined business also means it is well positioned in discussions with providers of market access for sports betting.

Under the regulations enforced by the Pennsylvania Gaming Control Board, operators each paid a $50,000 fee for five years of licensure. They are taxed at 15 percent of adjusted gross revenue and the money collected goes into the state’s general fund.

PA sports betting will be a tougher sell under the onerous regulations approved by the state. Anyone wishing to apply for a sports betting license must put up a $10 million licensing fee and pay an effective tax rate of 36 percent.

Written by

Adam Candee

Adam Candee is the managing editor of Legal Sports Report. He covers sports business and news from Las Vegas, where he works as a sports radio host for ESPN and VSiN. Adam is a former editor and reporter at the Las Vegas Sun, Arizona Daily Sun, and KLAS-TV. He can be reached at [email protected]